Japan’s Minister of Economy, Trade and Industry, Hiroshi Kajiyama, has pledged $10 billion in financial aid to ASEAN states in order to help their progress with energy transition.
The support measures and roadmap for changes were set out during a virtual meeting with ASEAN energy ministers and will include loans and investment from both the public and private sector in Japan, focusing on the growth of LNG and renewables.
“For us in Asia, we should not miss this trend on board and see this [as] an opportunity to seek both transition to cleaner society system and sustainable growth,” Japan’s Minister of Economy, Trade and Industry Hiroshi Kajiyama told the meeting participants.
“In particular in Asia, where energy demand will grow hereafter, it is essential to seek diverse and realistic energy transition, by utilising possible energy sources and technology, while taking into account each country’s peculiarity of difference in geographic characteristics and development phase,” Kajiyama said.
The finance forms part of Japan’s Asia Energy Transition Initiative which will see the support for the development of carbon neutrality and energy transition roadmaps, promotion of transition finance and support for technology development and demonstration.
The $10 billion financial support aims to help ASEAN countries drive clean energy and energy conservation, as well as the development of gas projects to transit away from coal. Japan also seeks to boost the development and deployment of offshore wind power generation, fuel ammonia and hydrogen.
The ASEAN member countries to be supported include; Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.